Q89. Consider the following statements:
The ‘Stability and Growth Pact’ of the European Union is a treaty that
1. limits the levels of the budgetary deficit of the countries of the European Union
2. makes the countries of the European Union to share their infrastructure facilities
3. enables the countries of the European Union to share their technologies
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Correct Answer: Option (a)
- The Stability and Growth Pact is a political agreement that sets limits on the fiscal deficits and public debt of the Member States of the European Monetary Union (EMU). These guidelines are intended to ensure sound management of public finances within the EMU in order to prevent one Member State’s irresponsible budgetary policies from spilling over and undermining the economic stability of the entire Europe. Hence, statement 1 is correct.
- The European Union Stability and Trade Pact does not make any provision related to the sharing of infrastructure and technology. Hence, statements 2 and 3 are not correct.
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